Re: Everything is overpriced?
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Currently every stock I research is trading at 20+ p/e multiples and trading at their 52week highs. Isnt there some overoptimism in the market? I wonder how some major catalyst can hurt current prices.
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If you just focus on PE, you're never going to be looking foward. You need to include growth in your evaluation process.
If a stock has a PE of 20, but consistantly grows earnings at 25% a year, it doesn't sound expensive....especially if you are comparing it to stocks with a PE of 20 that grow at 5-10% per year.
In this market, I have no problem with paying for growth, especially in some key sectors (i.e. tech, oil and oil services, arg, mining, contruction machinery, etc).
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